Navigating the highs and lows of investing in Europe: Insights from VCs Saul Klein and Raluca Ragab

TechCrunch Takes StrictlyVC Series to London: A Look at the U.S. vs. Europe Venture Market

In a recent event in London, TechCrunch’s StrictlyVC series delved into the differences and similarities between the U.S. and European venture markets. Renowned founder Saul Klein of LocalGlobe and managing director Raluca Ragab of Eurazeo discussed the state of the startup ecosystem on both sides of the Atlantic.

European startups have been making waves with significant funding rounds, especially in AI, but they also face challenges like a lack of late-stage capital and geopolitical tensions. The conversation highlighted the need for more exits in both markets to satisfy investors.

The discussion also touched on the impact of ongoing conflicts like the Israel-Hamas war and Russia’s war on Ukraine. Despite the proximity of these conflicts to startup hubs, both Klein and Ragab noted minimal business impact, with capital continuing to flow into Israel and companies continuing to grow.

One key difference between the U.S. and Europe is the dearth of late-stage capital in the latter, leading to leaner operations and lower volatility in the European market. While Europe may be behind in terms of funding large rounds, the panelists agreed that this constraint could lead to a more sustainable and balanced ecosystem.

Overall, the event shed light on the unique challenges and opportunities facing startups and investors in both the U.S. and Europe, emphasizing the need for continued collaboration and innovation in the global venture landscape.